The Vice President and New Patriotic Party (NPP) flagbearer, Dr Mahamudu Bawumia declared his intention to abolish the much-criticised electronic levy (E-Levy) on mobile transactions by March 2025, if he voted as president.

During an interaction with the media in Accra on Sunday, he also announced plans to introduce significant tax reforms, including a tax amnesty and a flat tax rate, within the first three months of his administration.

Dr Bawumia stressed the urgency of these changes, citing the need to foster a business-friendly environment crucial for job creation and economic transformation.

He emphasised that digitalisation would be a key pillar of his strategy to drive Ghana’s development and create employment opportunities for the youth.

Scrap it now not later

The E-levy was introduced in May 2022 by government to generate more revenue to undertake government projects in the country.

While launching the Election 2024 manifesto of the New Patriotic Party (NPP) in Takoradi last week, Dr Bawumia announced when voted into office, he will scrap the e-levy.

His statement has been criticised by many people including his political opponents.

Economist and professor of finance at the University of Ghana, Godfred A. Bokpin, has welcomed Dr Bawumia's proposal to scrap the E-levy and the decision as a "bold step".

However, Prof Bokpin says Dr Bawumia as Vice President, can use his existing influence within the NPP to push for the removal of the e-levy and other taxes now, rather than waiting until he is elected.

In a radio interview with Accra-based Peace FM, he noted that many economists and concerned Ghanaians had advised against the implementation of the e-levy, but the government chose to proceed.

He welcomed Dr Bawumia's commitment to scrap the tax, emphasising that the e-levy "has no future in this country," regardless of who assumes power.

E-levy to be a goner by March 2025

But Dr Bawumia told journalists at Kempinski the controversial tax will be a goner when he is in the driving seat as president next year.

“The e-levy will have to go by March as we present our first budget, given our focus on digitalisation as we take off,” Dr. Bawumia stated.

He also assured that his administration would prioritise bold decisions early on to create jobs and support business growth.

“The new tax reforms—the flat rate regime and the tax amnesty—will also be introduced immediately, as we are committed to supporting businesses to grow,” he added.

Meanwhile, the opposition National Democratic Congress (NDC) and other presidential aspirants have also pledged to stop the e-levy if given the mandate.

The NDC flagbearer, John Mahama, has affirmed that his government would abolish the 10 per cent betting tax, the COVID-19 levy and E-levy when elected as president. 

He said the governing NPP government’s introduction of those taxes was not in the interest of local businesses, taxpayers and, especially, young people who had resorted to betting to survive due to unemployment.

“I know the betting tax is a matter which is of great concern to the youth. I will reiterate that we will remove the betting tax, and the E-levy as well.

“We know that the government had signed an agreement with the International Monetary Fund (IMF) using the betting tax, COVID-19 and E-levy as revenue handles, but we will abolish them and look for other alternatives like the property tax which can give us 10 times more than what we get from E-levy,” Mr Mahama added.